If annual demand for a product stored in inventory is 50,000 units, each costing $25. The ordering cost is $25 per order, and the holding cost is 20%of the unit cost per year.
What is the economic order quantity using the fixed-order-quantity model? A. 707. B. 909. C. 634. D. 500. E. 141
What is the total annual cost per year?
1. $5,454 2. $17,625. 3. $3,735. 4. $3,536. 5.1,768
How many orders were placed during the year (rounded to the nearest whole number)? 1. 1,768 orders, 2. 3,536 orders 3. 500 orders. 4. 17,625 orders.
none of the above.